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ED Attaches INR 107 Crore Assets of Fair Deal Suppliers in Coal Fraud Case

Coal News - Published on Thu, 23 Jan 2020

Image Source: Coal Import Fraud
The Enforcement Directorate said that assets worth over INR 107.73 crore of a Kolkata based company Fair Deal Suppliers have been attached in connection with a money laundering probe linked to an alleged bank fraud case. The action has been taken against directors of the company Fair Deal Suppliers, and land and building in Coimbatore, an office building, a farm house, bungalow in Ahmedabad and seven fixed deposits have been attached under the Prevention of Money Laundering Act.

ED said that the firm and its directors Ram Prasad Agarwal, Narayan Prasad Agarwal, Pawan Kumar Agarwal and Saurabh Jhunjhunwala and others were booked by it after studying a CBI charge sheet filed against them for defrauding a UCO Bank flagship corporate branch in Kolkata. The probe found that Fairdeal Supplies Ltd and its directors availed various credit facilities and foreign letters of credit from UCO Bank fraudulently by submitting inflated and fabricated stock statement. ED alleged that the company did not route the sale proceeds of coal imported under the FLCs through the bank, resulting in accumulation of letters of credit. ED said "The funds were diverted for other purposes, thereby defrauding the bank to the tune of INR 231.95 crore. Directors of the company directed buyers of coal to remit sale proceeds of the imported coal to other accounts. The buyers of coal deposited the sale proceeds in the accounts other than accounts of Fairdeal Supplies Ltd. From these accounts, the funds were further diverted to acquire assets.”

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Posted By : Arun Huidrom on Thu, 23 Jan 2020
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